Host Country Institutional Factors Affecting Dutch and Vietnamese FDI Flows:Perspectives from Academic and Policy Maker

This study explores the challenges that investors from a developing country investing in a developed country and vice versus have to face, regarding the country-specific nature of institutional factors. These factors are: corruption, political stability, labour regulation, corporate law, taxation policies, logistic infrastructure availability, and labour skills. In-depth interviews were conducted with the representatives of the government and academic expertise of both countries. These structured discussions provide insights about the current level of each institutional factor and their influences on investors from each other’s country. The answer to this comparison study between the two countries reveals not only the institutional challenges that concern Dutch and Vietnamese firms, but also other intriguing patterns, such as whether these challenges vary across different countries. Strategies for firms to cope with the identified obstacles are also proposed.